Market Lubbock to chip in $1.38 million for X-FAB

Market Lubbock Inc.'s board of directors voted Wednesday to commit $1.38 million over the next three years to X-FAB Texas' wafer foundry operation if the company creates 138 jobs during that period.

X-FAB, a division of Elex Group n.v., now occupies the former Texas Instruments plant, which its Belgium-based parent purchased in January for a reported $34 million.

X-FAB produces double Electrically-Erasable Programmable Read-Only chips that are used in automotive-related devices such as electric car window sensors.

The company said it expects to employ as many as 280 workers at its Lubbock site over the next three years, once the plant is fully operational.

''All of the jobs they'll be creating over there will be in excess of $25,000, which is part of our requirement. These are great jobs,'' said Steve Hurt, chairman of the city-appointed economic development corporation.

Hurt said Market Lubbock's financial commitment to X-FAB was made in December and that Elex took that into account before purchasing the sprawling 700,000-square-foot plant.

Although only a third of the plant is being utilized, Hurt said Staubach & Co., the Dallas-based realty firm that was hired by TI to sell the facility, is still working on behalf of X-FAB to locate other tenants.

''I think X-FAB is a plus for Lubbock and we're pretty excited about them being here,'' Hurt said.

In other business, Market Lubbock's board also committed $250,000 over two years to Texas Tech's Office of Technology Transfer and Intellectual Property.

The funds were sought by the office's director, Walter Hauessler, who joined Tech last fall after serving as president of the Cornell (University) Research Foundation.

Hauessler also urged the board to assist in the start-up of a zero-stage venture capital fund, but the board rejected the request.

''We're not going to do any venture capital, but we are going to fund a position and other expenses (associated with the office) at Texas Tech,'' Hurt said.

Hauessler said the university plans to match Market Lubbock's commitment in an attempt to get the office and its mission off the ground.

The office will seek to match ongoing research, patents and other technologies developed at Tech with venture capital and other private-sector funding sources.